Day. S p back above 1800 here, so another positive day as one trader walked by and said, theyre still buying stocks. And still trading. The rain and wind is just now starting to kick up here in new york city. It is expected to get much worse each ensuing hour. The question now, how bad will it be for thanksgiving travel and for kickoff to the Holiday Shopping season. Well keep you updated throughout the show. And giving the slogan jersey strong an entirely new definition, Online Gambling is now legal in the garden state. You wonder if the sopranos would have existed if it was always the case. The ceo of the newly minu lly m website coming up exclusively. Hell try to pull himself away from the website for a little bit. While he spend time in the middle of it. In the markets, take a look at how were moving. The dow up 35 point, holding 16,100. Nas dashgs pretty nice rally after we saw the social media names getting hit yesterday. The s p 500 is doing pretty well up a quarter of a , adding four or five points. People talking about watching 1803 level in terms of support. Joining us on the closing bell exchange, rob lutz, Kimberly Ross and author of the book wealthy by design and our own rick santelli. Welcome to all of you. Welcome, everybody. Thank you. Glad to be here. Kim, thoughts on the market today. Is this drifting higher in the absence of volume . Do you see any conviction out there . Whats your read on things . Weve got seven straight weeks of up go ahead, kimberly. Im sorry. Seven straight weeks up on the market and were shooting for an eighth straight week. And i just think that coupled with low Interest Rates, the housing numbers are very, very good out there. Better than expected. Along with you know, we have two we have Something Like is it 2. 663 trillion in money markets still on the sidelines from ici. Org. You guys, this is just rocket fuel for the market. The markets are still going to continue upward. We dont see were have positive for the end of the year. You know, all of you are bullish. I see that in our notes here, which sort of makes my palms sweat here. Ken morery, you were looking for 16,000 on the dow. Were well above that now. Now what . I mean, do you just adjust your expectations higher . Or do you take profits here . Well, no. I think the market through the end of this year, i dont see too much more upside. I see profit taking towards the end of the year, potentially good data on shopping. I think that may surprise. So, through the end of the year, i dont see too much up or down. I think 16,000 is probably about where well be. However, heading into next year, my forecast for next year is dow 18,000, so i think theres a lot of upside still to come. Ill tell you where theres bearishness is. Next year early if the government decides to shut down, that could put us into a recession. If that happens, well be selling all of our stocks on behalf of our clients. Wait a minute. How likely is that scenario . Weve been through this before and each time despite all the drama, the markets have continued to march higher. I think its fairly unlikely that well have a shutdown. I think were learning to manage with the dysfunction down in washington. And im very optimistic well have a ratcheting up of valuations. When i look at the market, theres four factors i look at. Liquidity, earnings, growth, valuation and investor psychology. The only one that worries me a little is investor psychology is a little more favorable today. But bull markets die on optimism. We dont have a lot of optimism yet. We have, i think, acceptance of a bull market. So, i think we have a long ways to go. I see stock values about 15 undervalued today. Rick, ive seen ads, the end of the 30year bull markets is over treasuries. Ive heard that for five years now now, of course, but here we sit. Theres something to be said. I do believe that the big bull market is over. But that is predicated maybe on a 138 yield for a tenyear and, of course, we could still see yields move even lower than the current 2. 69. I dont think that changes the macro of that statement. As you look at a fiveyear chart, it could be were going to close at the lowest level. We havent closed under 1. 29 since the 309 of october. Imagine a line connecting all those bottoms, we might slide under it. We started to lose ground, more yield after buying after some data like Consumer Confidence and multifamily being the star today. Ill push back against all our guests. Listen, dysfunction, you can call it anything you want in the government. We currently have a Health Care Program where employers have no idea whats going to happen. Yet, the stock market continues to move higher. Believe me, if youre looking to stay long stocks or questioning whether you should be short treasuries or long treasuries, you need loo no further than the federal reserve. I agree with that. I think the talk of tapering, the federal reserve, i see that as potentially a very big buying opportunity. I think the stock market may sell off maybe 10 on that news. I see that as buy on stocks. If the fed is tapering, because they see strength in tapering. Bonds would not be the place because the fed has almost never done something one time. Its usually a series haof thin. If they continue tapering, theyll continue that cycle. If they do that, Interest Rates will trend upward. I think on the tapering news well have buying opportunity on stocks but selling opportunity on bonds. Kimberly, at the same time, though, a lot of people are pointing to the auctions weve had this week, almost 100 billion through thanksgiving holiday will be offered on twos, fives and sevens. It seems like the message, if you look at how low the yield is on a fiveyear, investors are understanding what the fed is saying this time. Saying even if they taper asset purchases thats not tantamount to purchasing and not going to raise rates higher, especially on the short end of things. I dont think its going to. Yellen is very dovish. I think shell continue the theme bernanke has set. The reality is, she believes that quantitative easing is the best path to growth. Until she sees that, i think theres going to be mixed messages. But theyre not going to be tapering. Theyre basically going to be creating more liquidity, which is only going to drive stocks higher. As we said, the bond market lower. You know, the stock market is really the only place going to be be able to create wealth for investors. At least in 2014. I dont have a crystal ball, but thats my two cents worth. Very good. Like i said, i get sweaty palms when everybodys bullish. Youve had sweaty palms for about 11 months then, mr. Bill. Yes, i have, as a matter of fact. Thanks. See you guys later. Lets check in on a couple of stocks that are driving this market to new highs yet again. Seema mody joining us. Whats popping on your radar screen . Well start with some bling. Tiffany, luxury retailer reporting better than expected Third Quarter earnings and revenue. Sales in asia continue to fuel demand. As a result, tiffany raised full year forecast. Now, move over to hormel moving higher, reporting Fourth Quarter earnings above analyst expectations thanks to strong exports of spam. For all those on the hunt for yield, the Company Raised its Quarterly Dividend by three cents to 20 cents a share. Now, lets talk about tech because google hit another record high. Motorola unit started selling 179 motog smartphone today, a month ahead of schedule. It was another tough quarter for barnes and noble, reporting 8 drop in quarterly revenue as less people are buying books. Dsw losing ground. Posting weaker than expected Third Quarter revenue as same store sales fell nearly 1 . We end with take two enter active, maker of grand theft auto. They are buying back carl icahns shares. Youre seeing shares down 5. 5 . Seema, thanks very much for that. Now, we have about 50 minutes to go before the closing bell. As weve said, stocks staging a late day rally, the opposite of what we saw yesterday in the session. The dows up by 35 point. Couple points to the s p. Nasdaq doing okay, too. You do the open and the close now . Thats right. Youre at the beginning and the end. I dont want to miss any activity. What a busy day. While stocks surge, commodities continue to slump for the most part. When we come back, find out if theres any opportunity to buy beaten down assets for someone whose entire firm is centered around how these commodities perform. Coming up. Also ahead, we will discuss why hanukkah falling on thanksgiving could impact how the crucial Holiday Shopping season pans out. Pacman fever what does the iconic 80s video game pacman have in common with the buy outbattle between mens wearhouse and joseph a. Banks . Its all about turning tables on your enemy. Stick around to find out more. The world is changing faster than ever, creating new opportunities for those who stand ready to seize them. In a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, our flexible, collaborative approach helps forwardlooking companies not only run better, but run different. To give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because now more than ever, the future belongs to those who challenge the present. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Stocks may be at record high but its been a tough go for people investing in commodities. Bertha coombs with that story. Quiet day today. Certainly the stronger dollar didnt necessarily prove to be the tail wind you might have expected. Nat gas today upfor sixth straight session with that cold weather socking much of the country and that storm making its way to the east coast. Thats certainly adding to the demand. As far as the rest of the energy patch, a mixed picture. We did have earlier brent and light sweet crude higher, bouncing off that big plunge after the deal with iran was announced. But now were looking ahead to inventories which will come in tomorrow. We are expected to see tenth straight week of building inventories for crude. We will get nat gas, expecting a 7 cubic foot withdrawal in nat gas. That comes out tomorrow. Bill, i know you look at whats going on at the pump. You might consider consider spending thanksgiving in minette, missouri, the cheapest gasoline in the country at 2. 72 a gallon. Its gone up 90s cents. I do follow gasoline prices carefully. Its been up nine cents in my neighborhood in the last week. You circled the neighborhood looking how far will you drive to save ill drive, ill drive. I know youre tight. With other commodities getting hit, what else do you do with the family of funds you run are all commodities . The Perfect Question for my old friend, frank holmes, to talk about what has been a tough year for commodities as an investment. Overall, are commodities markets tell us inflation is for now dead, is not an issue . I think so. Waiting is 10 rebalance, even though gold has been down for two years, rebalancing with 10 in gold and 90 s p, over the past ten years youve done spectacularly well. I like that idea of just 10 weighting. We actually own tiffany in our gold fund. The bigger issue is gold pmis. When we went from 2009, regressional analysis and what happens when global pmi, that is the purchasing manufacturers index, whenever the onemonth is above three months, you then start to get a momentum of in commodities. Youre not seeing it as of yet, but youre seeing some commodity stocks popping here. Frank, evidence is mounting that even as Global Growth rebounds this time around, its leaving commodities behind. This is simply the air coming out of a commodity super cycle. Even look at a day like today. Copper underperforming. The list goes on. What do you do as a Commodity Fund . Where do you think within this space we might actually see some rebound over the next couple of months . Well, historically, good question about copper, strong seasonal pattern, a book written in the 30s, copper you buy in december, you sell in march. This is a good buying time. If you look contrarian point of view, many of these stocks and materials have dividends higher than a fiveyear government bond. The global world is changing so much. 7 billion people and every three seconds theres a newborn baby. This is a big factor that will drive commodity prices. Theyre not going to collapse. Theyll have shortterm, big corrections but long term they have to go up. What about oil . We keep hearing about the change in balance of power around the world as u. S. Becomes a much greater oil producer but yet prices remain higher. Were still above 120 on wti, above 100 on brent. Where do you see that going . I just traveled. I just came back from india and i was in singapore and hong k g kong. What i find fascinating is that the price of fuel is so much more expensive in the u. S. I also find reside are packed with cars so activity remains robust. The other factor, thats key for america, low energy cost is a huge benefit to the Chemical Companies and manufacturing that were exporting to emerging markets, a higher end product whereas european Chemical Companies cant compete because theyre paying over 10 ncf. The input cost to that Manufacturing Sector and energy costs as an overall component to u. S. Companies gives it a huge competitive advantage. Are there any ideas for people out there just saying, im too skeptical here of what commodities are doing, i dont believe theyre going to rebound from these levels, do you have any ideas of ways to play this sector that maybe people hadnt considered or where theres tightness in terms of the supply out of the equation that could provide upside over the next few months . Every mean reverts. Ten assets, ten sectors of the s p lagging dramatically. Usually that sector rebounds. I think basic materials and energy have lagged overall the s ps ten sectors. When you take a look at the back drop the global manufacturer is rising, this is a leading indicator in pick up in demand for commodities. Frank, good to see you. Happy thanksgiving. Same with you. See you later. Frank holmes. Over to seema mody for a quick market flash. I want to point your attention to time warner cable. Shares are spiking. Cox communication is interested in buying the company. Comcast, parent of nbc universal, which cnbc is a unit of. In an industry thats consolidating, seems like everyone is looking at their options. Cable is hot. Well take a break. About 40 minutes left in the trading session with the dow up 43 point. The big winner has been the nasdaq, up 30 plus points. Were above 4,000. The first time weve closed above that since september of 2000. Speaking of, which jim cramer saying this is about workday on the closing bell yesterday. Take a listen. Workday after the bell, the most expensive stock. Wday, most single highly valued stock in america. That was before it jumpbed today on that earnings report, up almost 13 . Despite that jim saying workday is still a buy. Well debate investing in the Company Coming up next. Also, Online Gambling is now legal in new jersey. This is bad news to bookies, though. Well speak to the head of 8 88 holdings, running the gambling website for caesars entertainment. 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[ sassily ] aflac. Uh huh. [ under his breath ] i am so fired. Youre on in 5, duck. [ male announcer ] when youre sick or hurt, aflac pays you cash. Find out more at aflac. Com. [ male announcer ] when youre sick or hurt, aflac pays you cash. Stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. Its are taking the gloves on on workday. A david versus goliath story as they compete head to head with those like oracle and s. A. P. Take a look at shares, up 70 since the ipo over a year ago. Just reported Third Quarter earnings and beat wall street expectatio expectations. Jim cramer weighing in on the stock on closing bell yesterday. Workday reported after the bell, thats probably the most expensive stock. Wday, single most highly valued stock in america. Jim thinks its a buy even at these levels. Lets bring in max wolf who says hes not touching it. Guys, welcome. Ross, you think the stock is expensive here. Why do you have a buy on it . Well, this is a company thats basically taking share from some very large incumbent players, oracle and s. A. P. You mentioned. The market caps of those two companies combined is about 350 billion. The market cap of workday is about 13 billion. If they continue to take share, theres an awful lot of opportunity left in this name. Max, whats your issue with workday . We think it has a bright future, has a good model. If they continue to take share for two years, it will justify the valuation it has today. Thats the problem. Trading at more than 17 times next year, if you grow by almost 100 means that your price for perfect